Today I will tell you about what is NFT and how does it come into being?
before that, you have to pay attention to this thing that when a person has more money than he needs, he starts giving value to weird things.
You have a piece of paper, and you write “Dollar” on it so now it has become valuable. And if you write “Rupees” on it then it has become less valuable. Same as taking a wooden stick and some colors and drawing a picture of any famous personality e.g “Mona Lisa” then it will become an art.
Now, this art has a picture of the “Mona Lisa” famous person so it is more expensive and valuable than the picture of any non-famous person. So, things like that are called NFTs.
What is NFT:
NFT stands for “non-fungible token”. In which fungible means replaceable. And obviously, non-fungible means non-replaceable.
If I go to the store to get chocolate but my choice chocolate is out of stock in that store So, I can buy the same chocolate from another store but in the NFT case, you can’t buy your same choice thing from another place.
Real World Example:
Twitter CEO “Jack Dorsey” has sold his first-ever tweet for $2.9 million dollars as a non-fungible token. The tweet, published on March 21, 2006, simply said: “just setting up my twttr.” The first offer was made on December,15 and the bidding ended on March 21. let’s have a look.
So, the question is why do people buy these things? As I told you before that when a person has more money than he needs, he starts giving value to weird things. in old days, we use to buy things like “Ronaldo” (a famous footballer) shoes, a shirt, shorts. The same thing is now going to Digital like:
- First copy of books
- Video clips
And anything that can be digitally convertible can be sold as NFT. And the owner of any NFT is one who has the digital contract that lies on the blockchain.
Now we know what actually NFT is. So let’s talk about how does NFT comes into being?
How does NFT come into being?
The first thing is that someone creates an asset that is digital. Like, some music, video clips, gifs, memes, jpeg, etc, and anything that is digital can be converted in NFT.
The second thing is to convert the digital asset into a token. That token will remain on the blockchain.
And everything on the blockchain leans on the coin. And we have to choose that coin in which there is the capability of a smart contract like Ethereum, Cardano, Solana, etc. Now when we make that token there are a few things to put in it.
- Token Name
- Token Symbol
- Token Hash(The token Hash is the Authentication/Signature which is unique and tells us what is an NFT about)
And the last thing is to sell your token. when you are selling it e.g a painting, A token will generate a code on a blockchain from which we will know who is a new owner of this token. You can buy or sell this token with money or give a gift to someone. Also, some people are giving NFTs to their fans for free as a gift.
At the end of this article, I am summarising that NFT is a digital certificate of ownership. We’ve seen what is nft/what are nft/how to make money from nft. As NFT is an early technology so later maybe land contracts, Loans contracts, etc will become NFT. There will be many uses to come in future. We can’t say anything right now that if you invest in it, you will get six or you will be catch out at the boundary. The other thing is that NFT can’t be divided. The third thing is the record of all owners of NFT can be visible so it can be verified.
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well explained 👍